Market analysis

The analysis in the report will be based on an organization named Sweet Leaf Bath Co. which has its operations in Ontario since the year 2007. The report will provide detailed information based on different operations of the organization with respect to the corporate capabilities, competitive environment, consumer base and industry of operations. The issues which are thereby being faced by the organization in its operations is a major part of the report.

Sweet Leaf Bath Co. had started its operations in the year 2007 and the idea had mainly generated from the hobby based on making soaps at home. The main aim of the owners of Sweet Leaf Bath Co. and the two partners was related to the creation of products that are required for personal use. The partners then started sending the products to local retailers for selling based purposes. The products were thereby developed with the help of raw materials which are sourced in an ethical manner. Different products of the company have thereby proved to be ethically sustainable in nature as well. The major marketing challenge which has been faced by the organization is based on the lack of proper distribution centres and lack of full time availability of Guymer who was one of the partners or owners of Sweet Leaf Bath Co.

Strengths and weaknesses – The major strengths which have been developed by the organization in the industry are based on the products which are developed with the help of ethical raw materials. The sourcing based process of raw materials is also considered to be a strength which is related to the sustainability of the organization. The sales based channels which have been developed by the organization are also considered to be important parts of the operations of Sweet Leaf Bath Co. The organization has been able to develop a fair trade based advantage in the industry with the help of its products which are developed with the help of ethically sourced raw materials. The weaknesses of the organization on the other hand are based on the levels of competition which are faced in the industry. The product line of Sweet Leaf Bath Co. is also not quite wide which can be considered to be a huge disadvantage for its operations in the industry.

Opportunities and threats – The levels of growth which have been shown by the industry of operations of Sweet Leaf Bath Co. are considered to be a major opportunity based in the growth of revenues and profitability of the organization. The organization is also provided with a major opportunity to grow the sales based channel in order to increase its reach in the industry. Sweet Leaf Bath Co. can increase its revenues by using the opportunities that are related to fair trade based products. This will be helpful for the company to increase the levels of revenues and consumer base. The threats which are thereby faced by the organization are related to the lack of proper usage of sales based channels.

Corporate capabilities

Corporate capabilities – The financial capabilities which were developed by Sweet Leaf Bath Co. are not quite strong in nature. The two partners had started the organization for the purpose of selling the products which they had developed for personal use. The levels of sales which were provided by the organization required to be highly effective in nature to maintain the position in the industry. The operations of Sweet Leaf Bath Co. are based on the ways by which the organization is able to provide effective products to the consumers. The employees who are a part of Sweet Leaf Bath Co. are considered to be an important part of the effective operations.

Political factors – The political condition which has been developed in Ontario is able to affect the sourcing process of the organization. The industry is mainly based on the products which are environment friendly in nature and the risks related to health are also reduced. The organic product based industry is considered to be an important factor which affects the proper operations of Sweet Leaf Bath Co. The levels of awareness which exist in the country based on organic products are able to affect the revenues of Sweet Leaf Bath Co. This can be considered to be a strength for the organization.

Economic factors – The slow rates of economic recovery after the year 2008 due to high levels of financial crisis can affect the soap based market in a huge manner. The users have started reducing their spending levels on different types of products which are organic in nature. The consumers have also started indicating that they have not purchased the organic products due to high levels of expenses. The lack of economic growth is also considered to be a major weakness for the growth of Sweet Leaf Bath Co.

Social factors – The demands based on organic products have started increasing in last few years. The industry has also started growing with the help of different players which provide similar types of products to the consumers. The awareness of consumers has also started increasing in an effective manner which has affected the sales of Sweet Leaf Bath Co. The increase of demands for organic products is a strength which has provided growth opportunities to the organization.

Technological factors – The technological environment of the country is able to affect the sales based channels which has been developed currently. The online sales of the products of Sweet Leaf Bath Co. have been increased due to high levels of development of technological operations. The technological environment has been able to provide effective support to the sales channels which is a major strength of the organization.

Competitive analysis – Sweet Leaf Bath Co. has faced huge competition from different players which are a part of the industry. The major players are thereby able to provide tough competition to the organization based on sales and profitability. The competitors of Sweet Leaf Bath Co. in the organic industry mainly include, Tashodi, Delapointe, L’Herbier, Kynk Naturals and Earth to Body. The organizations are also known in the industry for offering fair trade based organic products to the consumers. Sweet Leaf Bath Co. is provided with high levels of competition from these organizations in the organic industry. Fair trade based advantage is considered to be an important factor which is able to affect the operations of different organic companies. The products which are thereby offered by the organization are thereby able to fulfil the needs of consumers. The product line of the organization is based on the ways by which the competitors are able to operate in the organic industry in a profitable manner.  

Industry analysis (PEST)

Consumer analysis – The consumers who are a part of the organic industry are able to purchase different fair trade based products from the organizations. In the year 2011, more than 17% of the consumers have purchased different fair trade products from the organizations which are a part of the industry. The consumers who thereby tend to buy the fair trade products are also interested in the eco-friendly products as well. The fair trade movement has been supported by the many women and the organizational operations have also improved currently. The consumers in organic product based industry are mainly interested in eco-friendly nature of operations and usage of proper raw materials as well. The levels of awareness among consumers based on different chemical ingredients which are used in the personal care based activities are quite high. The high expectations related to the companies are considered to be important based on the environmental and social issues based on different aspects which include, design, manufacturing, sales and sourcing. This has been able to increase the demands for products which are thereby offered by Sweet Leaf Bath Co. 5Ws – Why – the promotional activities are developed for reaching the target customers. Who – The target customers of Sweet Leaf Bath Co. are the consumers who are concerned about the health benefits. What – The management mainly wants the customers to buy the products from Sweet Leaf Bath Co. Where – The company is aiming at reaching the online and offline customers. When – Sweet Leaf Bath Co. is trying to improve its revenues when the organic industry is at its topmost growth phase.

Selection of target market – The major target which has been selected for the products of Sweet Leaf Bath Co. include young people who are interested in organic items. The target consumers who are a part of the industry are thereby mainly interested in the green or organic products. Sweet Leaf Bath Co. has offered to the products to an effective target market with the help of different organic products. The consumers who are interested in the Fair trade certified products are also an important part of the target market which has been developed in the country.

Product – The products which are offered by Sweet Leaf Bath Co. include, body products and bath items. Different products which are offered by the organization are Fair Trade Certified in nature. Sweet Leaf Bath Co. has offered different products which include, bar soaps, polishes and scrubs, body and hand wash, lip care, body butters, body care and men’s beard care and body care. These are based on the different types of needs of consumers who are an important part of the industry.

Placement – The products which are developed by Sweet Leaf Bath Co. are able to reach the consumers with the help of different channels. The wholesale channels are able to offer the products to the consumers. The website of the organization is also considered to be a major place where the products are provided to the customers. More than 25% of the total sales levels of the organization is based on the online channels. More than 20 retail locations in Canada are also able to offer the products to the customers. Most of the locations which are based on the offering of products are present in Ontario. The organization thereby offers the products to customers with the help of different vendor shows which are arranged by Sweet Leaf Co. Major distribution based partners of Sweet Leaf Bath Co. in the industry mainly include, the two different websites Etsy and Pristine Planet. The organization further provides contracts to the distributors in order to provide the products to the customers in an effective manner. Purity Life is an organization which is provided by distribution based contracts in order to offer them to the consumers.

Price – The prices which are set for the products that are developed by the organization in the industry are quite high as compared to normal products. The consumers in the industry have also been an important part of the price based policy which has been developed by Sweet Leaf Bath Co. in the industry.

Promotion – The options related to promotions which have been implemented by the organization are based on public relations of Sweet Leaf Bath Co. The organization has hired a consultant who is able to develop the public relation based activities. The process of redesigning of the products is also considered to be an important promotion activity of the organization. Sweet Leaf Bath Co. has also organised a campaign which is based on different social media based pages. The social media based platforms which are thereby used by the organization in order to promote the products mainly include, Twitter and Facebook. The budget which has been set by the company for its Facebook campaign is also a main part of the promotional process. Google Adwords campaign is used by the organization in order to promote different products which are developed by Sweet Leaf Bath Co. The processes of daily deal site based promotion and point-of-sale based displays are used for promotional activities of Sweet Leaf Bath Co. The financial investment which can be made by Sweet Leaf Bath Co. is considered to be effective for the promotional activities of the organization.

Conclusion

The report can be concluded by stating that the organization has been able to develop a customer base in the organic industry with the help of different products. The corporate levels of capabilities have been able to provide major growth based opportunities to the organization. The organic industry has also shown huge levels of growth in the recent environment due to demands of eco-friendly products among the customers. The increase in number of customers who are highly interested in the organic industry has been used as an opportunity by Sweet Leaf Bath Co. The levels of competition which are faced by the organization are however quite high and the company thereby needs to face the organizations effectively with the help of its products. The consumers of the organization are considered to be an important part of the industry who are able to increase the levels of growth. The target market based selection process of the organization is based on the organic products which are offered to them. The marketing mix of Sweet Leaf Bath Co. has been able to prove that the company has been able to develop an effective position in the industry with the help of its distribution network. The promotional activities have played a key role in the development of the organization and the organic industry as well.